Consumer durables sector may grow at 12%: study

Spurred by the shift in consumers preference toward higher-end branded products, the consumer durable goods sector is expected to grow at 12% in 2007-08, a Ficci survey said.

The sector had grown by 11.5% in 2006-07 against 8.5% in the previous year. During April-September 2007, the overall growth of consumer durables industry has been 13%, a trend that is likely to continue as the industry expects a growth of 12% this fiscal.

The survey reflects the changing dynamics of consumer behaviour since luxury goods are now being perceived as necessities with higher disposable incomes being spent on lifestyle products, Ficci president Habil Khorakiwala said in a statement.

The survey noted that the countrys rural market was growing faster than the urban market. The rural Indian market, which accounts for nearly 70% of the total number of households, is witnessing a 25% annual growth, while the urban consumer durables market is growing at an annual rate of 7-10%.